Aditya Vision Q2 profit rose 45% despite demand shocks

Aditya Vision Limited reported Q2 FY27 revenue of Rs 586 crore, up 28.1% year on year, while net profit rose 45.2% to Rs 18 crore despite Bihar flooding, food inflation and anticipated appliance price increases. Gross margin rose 125 basis points to 16.3%, allowing profit to grow faster than sales.

How did Aditya Vision perform in Q2 FY27?

Aditya Vision increased revenue, operating profit and net profit in Q2 FY27, with net profit growing faster than revenue. Revenue from operations rose from Rs 458 crore in Q2 FY26 to Rs 586 crore in Q2 FY27. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 31.6% to Rs 46 crore, while profit before tax rose 45.3% to Rs 24 crore.

Aditya Vision’s margins expanded in the quarter. Gross margin increased to 16.3% from 15.1%, a rise of 125 basis points, where one basis point equals one-hundredth of a percentage point. EBITDA margin rose to 7.8% from 7.6%, and net profit margin increased to 3.2% from 2.8%.

Cost of goods sold increased 26.3% to Rs 491 crore, below the 28.1% revenue increase, while gross profit rose 38.8% to Rs 96 crore. Other expenses grew 46.0% to Rs 50 crore, depreciation rose 29.6% to Rs 13 crore, and interest increased 4.7% to Rs 10 crore. Diluted earnings per share rose 45.9% to Rs 1.43 from Rs 0.98.

What demand pressures did Aditya Vision face in Q2 FY27?

Aditya Vision said Bihar floods, staples inflation, fuel uncertainty and appliance price rises affected discretionary spending conditions during Q2 FY27. Floods across 15 Bihar districts disrupted footfalls and rural incomes in its core market, according to the presentation. It also cited heavy rainfall between September 25 and September 28 that flooded paddy fields and damaged standing crops in Bihar and Uttar Pradesh.

The presentation cited September 2026 retail inflation of 5.5% as food prices increased, which it said pushed households to save and squeezed spending on consumer durables. It also identified concern around fuel supply and higher liquefied petroleum gas, or LPG, prices as factors making households hold cash. These conditions occurred while Bihar accounted for 72% of H1 FY27 revenue.

Aditya Vision also pointed to an industry-wide appliance price increase before the festive season. The presentation cited manufacturers planning price increases of 4% to 8% from October 1 for categories including air conditioners, televisions, refrigerators and washing machines. It described this as the third industry price increase of 2026 and said buyers could defer purchases.

What drove Aditya Vision’s H1 FY27 growth?

Aditya Vision’s H1 FY27 revenue rose 27.3% to Rs 1,779 crore from Rs 1,398 crore, supported by higher same-store sales, bill cuts and average selling prices. EBITDA increased 36.8% to Rs 170 crore, and net profit rose 41.0% to Rs 96 crore from Rs 68 crore. The first-half profit increase therefore exceeded the increase in revenue.

Same-store sales growth, or SSSG, reached 18% in H1 FY27, compared with 2% in H1 FY26. Aditya Vision said the previous year’s SSSG was affected by unseasonal rainfall. Bill cuts rose 16.8% from 620,000 to 724,000, while average selling price increased 6.8% from Rs 22,724 to Rs 24,272.

H1 FY27 margins also rose from H1 FY26. Gross margin increased 91 basis points to 16.2%, EBITDA margin rose 66 basis points to 9.6%, and net profit margin rose 52 basis points to 5.4%. Gross profit grew 34.9% to Rs 287 crore, while interest expense increased 16.1% to Rs 22 crore.

How is Aditya Vision expanding its network and state mix?

Aditya Vision operated 214 stores in H1 FY27, compared with 188 stores in H1 FY26, an increase of 13.8%. Its retail footprint grew 18.3% to 951,000 square feet from 803,625 square feet. The presentation says the company entered Chhattisgarh, Madhya Pradesh and West Bengal within six months, accelerating geographic expansion ahead of management’s guidance.

Bihar remained Aditya Vision’s largest revenue market, contributing 72% of H1 FY27 revenue. Uttar Pradesh contributed 16%, Jharkhand 11% and Chhattisgarh 1%. The network comprised 120 stores in Bihar, 56 in Uttar Pradesh, 33 in Jharkhand and five in Chhattisgarh, accounting for all 214 stores disclosed for four states.

Product mix shifted modestly in H1 FY27. Large appliances represented 60% of sales, down from 61% in H1 FY26, while digital gadgets rose to 23% from 21%. Small and other appliances accounted for 17%, compared with 18% a year earlier, making digital gadgets the only disclosed product group to gain share.

Aditya Vision describes its six-state Hindi-heartland strategy as addressing states that collectively account for about 45% of India’s population. Its presentation lists populations of 13 crore for Bihar, 24 crore for Uttar Pradesh, 4 crore for Jharkhand, 3 crore for Chhattisgarh, 9 crore for Madhya Pradesh and 10 crore for West Bengal. Bihar’s revenue concentration means conditions in that state remain material to reported growth.

What do Aditya Vision’s balance sheet figures show?

Aditya Vision reported total equity and liabilities of Rs 1,533 crore in September 2026, compared with Rs 1,471 crore in March 2026. Total equity increased to Rs 768 crore from Rs 688 crore. Current borrowings declined to Rs 293 crore from Rs 331 crore, while non-current lease liabilities increased to Rs 240 crore from Rs 214 crore.

Inventory rose to Rs 865 crore in September 2026 from Rs 840 crore in March 2026, while cash and cash equivalents in the balance sheet increased to Rs 147 crore from Rs 129 crore. Total current assets increased to Rs 1,097 crore from Rs 1,079 crore. Property, plant and equipment rose to Rs 136 crore from Rs 131 crore.

Net cash flow from operating activities was Rs 119 crore for the period ended September 2026, compared with Rs 136 crore in September 2025. Cash generated from operations fell to Rs 142 crore from Rs 156 crore, while working-capital movements were an outflow of Rs 28 crore versus an inflow of Rs 32 crore. Cash flow from investing activities was an outflow of Rs 36 crore, compared with Rs 23 crore a year earlier.

Conclusion

Aditya Vision’s Q2 FY27 results show that revenue growth of 28.1% and net profit growth of 45.2% were achieved while the company reported weather, inflation and pricing pressures on discretionary demand. The main financial change from Q2 FY26 was gross-margin expansion to 16.3% from 15.1%, alongside a net profit margin increase to 3.2% from 2.8%.

What to watch next is the effect of the 4% to 8% appliance price increases planned from October 1, as well as weather and household-spending conditions in Bihar, which supplied 72% of H1 FY27 revenue. Management’s expansion into Chhattisgarh, Madhya Pradesh and West Bengal and the 214-store network will also determine how quickly its revenue mix changes beyond its core state.